What GLAGOV Trial Results Mean for The Medicines Company (MDCO)

By Carrie Williams

What does GLAGOV trial results mean for The Medicines Company (MDCO)?Biopharmaceutical company The Medicines Company (NASDAQ: MDCO) had recently redirected their R&D efforts into their PCSK9 synthesis inhibitor candidate after observing some positive data coming out of the Orion-1 trial. MDCO had also decided to end their work on anticholesterol candidate MDCO-216 as its clinical proof of concept had shown low efficacy data.

The timing couldn’t have been more perfect, as there is some positive news reported from the American Heart Association (AHA) 2016 Scientific Sessions yesterday for PCSK9 inhibitors. Reacting to the news today, Chardan analyst Gbola Amusa reiterated their Buy rating on the shares with a $65 price target. The price target being an upside of 76.67% from the current price of $36.79.

Thought leader Dr. Steven Nissen had presented the results of the Global Assessment of Plaque Regression with a PCSK9 Antibody as Measured by Intravascular Ultrasound (GLAGOV) trial in AHA session yesterday. The results indicated that the addition of Repatha to statin therapy caused substantial atheroma (plaque) regression, with a continuous benefit to patients, even with LDL-cholesterol (bad cholesterol, LDL-C) down to as low as 20 mg/dL.

Gbola Amusa believes that the GLAGOV results indicate a higher probability of success for PCSK9 inhibitors (like Repatha, Praluent, inclisiran) in future outcomes studies, making Medicines Company one of the top choices for investors who are looking in the theme of the emergence of PCSK9 inhibitors. Amusa explains in his research note released today

“We believe that the continuous effect of PCSK9 inhibitors (in this case, Repatha) on plaque regression, if it translates to an outcomes benefit, would enhance the demand for PCSK9 inhibitors, as PCSK9 inhibitors are the only medicines that can be added to statins to generate the as much as 50-80% reductions in LDL-C needed to reliably get patients down to LDL-C levels as low as 20 mg/dL.”

The Q3 results for MDCO announced on October 26 had reported both earnings beat (-$0.64 vs consensus of-$1.30) as well as revenue beat ($37.6 million vs consensus of $37.26 million).

MDCO has rating consensus of a Strong Buy among analysts issuing ratings lately on the stock, according to data compiled by TipRanks. The analysts’ average price target is $50.67, which is an upside of 37.73% from the last close price.